EU set to extend holiday travel protection

Travellers who book holiday packages with combinations of flights, hotels, car rentals etc on the Internet or in the high-street look set to receive tougher financial protection if things go wrong, under plans put out for consultation by the European Commission.

The Commission is consulting on extending the basic cover provided by EU’s 1990 Package Travel Directive – on information, liability for sub-standard services and protection for insolvency - to the next generation of ‘dynamic packages’ where consumers make up their own packages, often online, through one website or different partner websites.

The Commission intends to bring forward concrete proposals to review the Package Travel Directive in Autumn 2010. The Commission is also in the process of preparing a review on air passenger rights which will deal with a wide range of consumer issues, including the insolvency of airlines.
 
EU Consumer Commissioner Meglena Kuneva said: “We need tough protection that gives all consumers booking a package holiday the peace of mind they deserve, and we need a level playing field so businesses compete on equal terms.”

She added, “I am particularly concerned about the issue of insolvency. Anyone who saw the TV pictures of thousands of holidaymakers stranded at airports after bankruptcies from Sky Europe to XL, Futura and Zoom, knows that now is the right time to ask tough questions about extending basic insolvency protection to consumers across the board.”

According to the EU, 23% of EU consumers, and over 40% in countries like Ireland, Sweden are now booking dynamic packages, many of which currently fall outside EU protection rules (67% mistakenly think they are protected).